10 Questions
Which of the following statements accurately describes organic growth?
It refers to the expansion of a firm by increasing its output and operations.
What is a key advantage of organic growth over integration strategies?
It enables the firm to maintain control over its business operations.
Which of the following statements about integration strategies is true?
They are often poorly managed, leading to the loss of key workers.
What is a potential disadvantage of relying solely on organic growth?
It may be too slow for directors aiming to maximize their salaries.
Which strategy might a European company pursue to expand into the Asian market, which it has no expertise in?
Horizontal integration
What type of organizations are primarily focused on maximizing social welfare and helping individuals and groups?
Non-profit organizations and charities
Which company is provided as an example of a firm that grew through organic growth?
LEGO
What is a potential reason for a firm to pursue integration strategies instead of organic growth?
To gain access to new markets or assets that are difficult to obtain through organic growth alone.
Which of the following statements about mergers and acquisitions is true?
Firms often pay too much for takeovers, and integration is frequently poorly managed.
What is a potential advantage of pursuing integration strategies over organic growth?
Faster pace of growth and expansion.
Test your knowledge on vertical integration in business, including forward and backward integration, mergers, and takeovers. Learn about growth strategies through amalgamation and the benefits and challenges of integration.
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